Overview of Revaluation Unrealized Gains or Losses

Revaluation launches a process that revalues the ledger currency equivalent balances for the accounts and currencies you select, using the appropriate current rate for each currency.

Resulting unrealized gain or loss amounts are posted to the unrealized gain or loss accounts or to the cumulative translation adjustment account. The revaluation journal is created, balanced, and posted automatically by balancing segment values.

Revaluation journal entries are created to adjust the ledger currency balances for conversion rate fluctuations, in accordance with:

• Statement of Financial Accounting Standards No. 52, Foreign Currency Translation

• International Accounting Standard (IAS) 21, The Effects of Changes in Foreign Exchange Rates

The revaluation journal entries generated and posted in the primary ledger are automatically generated, converted, and posted to each of their reporting currencies. Define the cumulative translation adjustment account in the reporting currency prior to running revaluation.